Labor Code section 406

Any property put up by an employee, or applicant as a part of the contract of employment, directly or indirectly, shall be deemed to be put up as a bond and is subject to the provisions of this article whether the property is put up on a note or as a loan or an investment and regardless of the wording of the agreement under which it is put up.

Source: Section 406, https://leginfo.­legislature.­ca.­gov/faces/codes_displaySection.­xhtml?lawCode=LAB§ionNum=406.­ (updated Jan. 1, 1937; accessed Jun. 25, 2025).

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Verified:
Jun. 25, 2025

§ 406's source at ca​.gov